Banyan Tree Hotels and Resorts - Building an International Brand from an Asian Base

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Promotion

- Print and outdoor media not many words

- Images of issues that transcended borders and cultures

- Global

Campaign Themes

In the 1970s, Benetton produced very conservative and mainstream advertisements stressing its European origins and product quality. This all changed with the hiring of photographer Oliviero Toscani. In his first campaign “All the Colors of the World” launched in 1984,

- Toscani featured a multiracial group of teenagers wearing colorful sweaters. The success of this campaign led to a radical change in Benetton’s communications strategy.

- Benetton would now use their advertisements to promote humanitarian issues including:

- Racism- white woman feeding white baby 1989, worse in US and South Africa and won 5 awards in Europe and was the first big issue

- AIDS- part of “Reality” Campaign, AIDS victim dead and his family grieving. Wanted to evoke strong and bring AIDS to spotlight, distribute condoms in retail stores

- Violence- 1994 “Known Soldier” bloody clothes from Gagro, a Croatian solider killed in Bosnia. Most negative in France, criticized for being insensitive and using someone’s loss for their gain, personal responsibility to remind the world of their problems

- Love- “Love, the underlying reason for life” one was a nun kissing a priest was rejected in US and france but accepted in England. 2nd was a newborn still attached to umbilical cord, minimal in US and Britain and banned in Milan, France, Germany, and Ireland

- war, poverty, overpopulation, alienation, and capital punishment among others.

Benetton advertisements have had more positive implications for worldwide advertising. Benetton pioneered the idea of social responsibility in marketing and advertising. One major implication has been the adaptation of younger generations to a new level of social awareness.

Cathay Pacific Airways

Hong Kong’s privately owned International Airline. 1946 founded by an American and Australian originally based in Shanghai

Competition

- China National Aviation Corporation (CNAC)

- Commercial arm of the regulatory Civil Aviation Administration of China

- CNAC carried out business since 1978, the year of Chinas economic reform

Swire’s Strategic Moves

Stock Exchange 1986

- Holdings diluted for Swire from 70% to 54.24%

- Holdings diluted for the Hong Kong Bank (HSBC) from 30% to 23%

Maintaining a good relationship

- In February 1987, China International Trust and Investment Corporation Hong Kong Limited (CITIC HK) sold 12.5% stake in Cathay Pacific

- CITIC HK invested in strategic industries in Hong Kong by acquiring Tylfull Company in 1990

DragonAir and the China Market

- Open Door Policy 1979

- Hong Kong Dragon Lines (DragonAir, 1986)

- Merger

- Booming Chinese Markets

Trobled Skis

- CNAC HK

- Tapai Airlines Association

Global Opportunities and Challenges

Big potential market for global airlines

Challenges:

- Capitalize on Globalization while retaining their Asian identity

- Build rewarding relationships with strong global partners

Cathay jointed with American Airlines, British Airways, and Quantas founded Oneworld in 1999

CNAC was rumored to be merging with Air China and China Southwest Airlines

In 2002 Cathay’s net profit dropped:

- Affected by the economic slowdown

- September 11th attacks

- SARS epidemic

2003 Airlines resumed

- Cathay granted a permit for takeoffs and landings in Beijing but denied access to Shanghai and Xaiment

- Chinese authorities attempted to presever HK’s status as the entry hub

- The pact limited foreign competition and solidified Cathay as HK flag carrier

- Profits rose in 2007 but were concerned about weakening US economy

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